Vakifbank brings euro deal to primary; Uruguay launches global bond; Emaar notes widen

By Aleesia Forni

Virginia Beach, June 10 – Uruguay launched a $2 billion issue of global bonds on Tuesday during an active session for emerging markets bonds.

The space also saw Brazil’s Odebrecht Oil & Gas Finance Ltd. price $400 million of perpetual senior notes, while Turkiye Vakiflar Bankasi TAO (Vakifbank) was in the market a five-year offering of eurobonds.

In other news from that region, both Turkey’s Kuveyt Turk Katilim Bankasi AS and Cyprus mandated bookrunners ahead of planned bond offerings.

The primary also saw Dubai’s Emaar Malls Group, a subsidiary of Emaar Properties set price guidance for proposed dollar-denominated notes.

In the secondary market, Emaar’s existing 6.4% notes due widened about ¼ of a point on the offered side, a trader said.

“Very busy day with [a] balanced flow,” the trader said.

Odebrecht prices $400 million

Brazil’s Odebrecht Oil & Gas Finance priced a $400 million issue of perpetual senior notes (/BBB-/) at par to yield 7% on Tuesday, a market source said.

The notes sold in line with talk.

Morgan Stanley, BB Securities and Bradesco BBI were the bookrunners for the Rule 144A and Regulation S deal.

HSBC, Itau BBA and Santander were the global coordinators, while Credit Agricole, Mitsubishi UFJ Securities, Natixis and Societe Generale were the co-managers.

Proceeds will be used for general corporate purposes.

Odebrecht Oil & Gas will guarantee the notes.

Odebrecht is an engineering, construction, chemical and petrochemical conglomerate based in Salvador da Bahia, Brazil.

Vakifbank offer

Vakifbank came to Tuesday’s primary market with a €500 million offering of 3½% five-year bonds (Baa3//BBB-) priced at 99.326 to yield 3.65%, or mid-swaps plus 292 basis points, according to a market source.

The joint bookrunners were Barclays, BNP Paribas, Commerzbank, Erste Group, Natixis and UniCredit.

Vakifbank is a lender based in Istanbul.

Uruguay launches global bonds

Uruguay launched $2 billion of global bonds due 2050 at 165 bps over Treasuries on Tuesday, according to a market source.

The notes launched at the tight end of guidance, which was set at 165 bps to 170 bps over Treasuries.

Initial guidance was set in the area of 170 bps over Treasuries.

Proceeds will be used for general purposes of the government, including financial investment and the refinancing, repurchase or retiring of domestic and external debt, and to fund a tender offer.

HSBC Securities and J.P. Morgan Securities LLC are managing the offering.

Kuveyt Turk sets roadshow

In forward calendar news, Turkey’s Kuveyt Turk Katilim Bankasi has mandated banks to arrange a series of investor meetings ahead of a possible sukuk offering, according to an informed source.

Standard Chartered, Citigroup, Emirates NBD Capital, HSBC and KFH Investment are the bookrunners.

Kuveyt Turk is an Istanbul-based Islamic financial institution.

Cyprus investor meetings

Also on Tuesday, Cyprus announced bookrunners for a roadshow ahead of a possible euro-denominated offering of notes, according to an informed source.

Deutsche Bank, Goldman Sachs, HSBC, UBS and VTB Capital are arranging the meetings.

Emaar Malls sets talk

Dubai’s Emaar Malls Group set price talk for its 10-year dollar-denominated issue of Islamic bonds in the area of mid-swaps plus 190 bps, an informed source said.

Talk tightened around 10 bps from earlier guidance, which was set in the mid-swaps plus 200 bps area.

Dubai Islamic Bank, Emirates NBD Capital, First Gulf Bank, Mashreq, Morgan Stanley and National Bank of Abu Dhabi are the bookrunners for the Regulation S sukuk.

Marfrig guides five-years

Elsewhere, Marfrig Holdings (Europe) BV set price guidance for a planned offering of five-year senior notes (B2/B/) in the area of 7¼%, market sources said.

The notes will be guaranteed by Marfrig Global Foods SA and Marfrig Overseas Ltd.

Proceeds will be used to fund a tender offer and to refinance short-term debt.

BTG Pactual, HSBC, Itau BBA and Morgan Stanley are the bookrunners for the Rule 144A and Regulation S without registration rights deal.

The notes will be non-callable for three years and feature a 35% equity clawback and change-of-control put at 101%.

Marfrig is a food processing company based in Sao Paulo.

Christine Van Dusen contributed to this review.

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